| MARKFORGED HOLDING CORPORATION | |||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||||||||||
| (In thousands) (Unaudited) | |||||||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| 2024 | 2023 | | 2024 | 2023 | |||||||||||
| Net loss | $ | (23,370 | ) | $ | (51,362 | ) | | $ | (73,714 | ) | $ | (89,369 | ) | ||
| Stock compensation expense | 3,142 | 4,112 | | 9,848 | 10,158 | ||||||||||
| Change in fair value of derivative liabilities | (63 | ) | 94 | (189 | ) | (220 | ) | ||||||||
| Change in fair value of contingent earnout liability | 7,408 | 2,502 | 6,274 | 2,509 | |||||||||||
| Amortization | 392 | 249 | 1,141 | 780 | |||||||||||
| Goodwill impairment | — | 29,467 | — | 29,467 | |||||||||||
| Litigation judgment | 423 | — | 17,723 | — | |||||||||||
| Non-recurring costs1 | 2,519 | 1,147 | 6,360 | 7,039 | |||||||||||
| Non-GAAP net loss | $ | (9,549 | ) | $ | (13,791 | ) | | $ | (32,557 | ) | $ | (39,636 | ) | ||
| 1 Non-recurring costs incurred during the three and nine months ended September 30, 2024 and 2023 relate to litigation, severance costs, transaction expenses, and gain on lease termination. | |||||||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| Non-GAAP Cost of Revenue | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Cost of revenue | $ | 10,441 | $ | 10,907 | | $ | 31,665 | $ | 36,891 | ||||||
| Stock compensation expense | 28 | 39 | | 112 | 201 | ||||||||||
| Amortization | 357 | 214 | 1,065 | 660 | |||||||||||
| Non-GAAP Cost of Revenue | 10,056 | 10,654 | 30,488 | 36,030 | |||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| Non-GAAP Gross Profit | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Gross profit | $ | 10,043 | $ | 9,168 | | $ | 31,054 | $ | 32,723 | ||||||
| Stock compensation expense | 28 | 39 | | 112 | 201 | ||||||||||
| Amortization | 357 | 214 | 1,065 | 660 | |||||||||||
| Non-GAAP gross profit | 10,428 | 9,421 | 32,231 | 33,584 | |||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| Non-GAAP Sales and Marketing Expenses | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Sales and marketing expenses | $ | 8,144 | $ | 8,194 | | $ | 24,514 | $ | 28,436 | ||||||
| Stock compensation expense | 360 | 448 | | 1,152 | 1,423 | ||||||||||
| Amortization | 35 | 35 | 76 | 120 | |||||||||||
| Non-recurring costs 1 | 313 | — | 313 | — | |||||||||||
| Non-GAAP sales and marketing expenses | 7,436 | 7,711 | 22,973 | 26,893 | |||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| Non-GAAP Research and Development Expenses | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Research and development expenses | $ | 7,850 | $ | 9,724 | | $ | 26,845 | $ | 30,390 | ||||||
| Stock compensation expense | 804 | 1,195 | | 2,913 | 3,524 | ||||||||||
| Non-recurring costs 1 | 880 | — | 880 | — | |||||||||||
| Non-GAAP research and development expenses | 6,166 | 8,529 | 23,052 | 26,866 | |||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| Non-GAAP General and Administrative Expenses | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| General and administrative expenses | $ | 11,162 | $ | 12,202 | | $ | 33,661 | $ | 36,450 | ||||||
| Stock compensation expense | 1,950 | 2,430 | | 5,671 | 5,010 | ||||||||||
| Non-recurring costs 1 | 2,299 | 1,147 | 6,140 | 7,039 | |||||||||||
| Non-GAAP general and administrative expenses | 6,913 | 8,625 | 21,850 | 24,401 | |||||||||||
|
Three Months Ended
September 30, | |
Nine Months Ended
September 30, | |||||||||||||
| Non-GAAP Operating Loss | 2024 | 2023 | | 2024 | 2023 | ||||||||||
| Operating loss | $ | (17,536 | ) | $ | (50,419 | ) | | $ | (71,689 | ) | $ | (92,020 | ) | ||
| Stock compensation expense | 3,142 | 4,112 | | 9,848 | 10,158 | ||||||||||
| Amortization | 392 | 249 | 1,141 | 780 | |||||||||||
| Goodwill impairment | — | 29,467 | — | 29,467 | |||||||||||
| Litigation judgment | 423 | — | 17,723 | — | |||||||||||
| Non-recurring costs 1 | 3,492 | 1,147 | 7,333 | 7,039 | |||||||||||
| Non-GAAP operating loss | (10,087 | ) | (15,444 | ) | (35,644 | ) | (44,576 | ) | |||||||
| 1 Non-recurring costs incurred during the three and nine months ended September 30, 2024 and 2023 relate to litigation, severance costs, transaction expenses, and gain on lease termination. | |||||||||||||||
